Crypto Lending Soars 200%, Nears $25B in Major Comeback

Crypto News DeFi

Crypto Lending Skyrockets 200%, Nears $25 Billion as Market Roars Back

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 01, 2025

Key Takeaways

Crypto lending soared to $25 billion in Q3 2025, up over 200% from early 2024, though still below its 2022 peak of $37 billion;
CeFi lenders like Tether (60% share) dominate a revived market now defined by transparency and over-collateralization;
Combined DeFi and CeFi lending hit a record $65.4 billion, with DeFi alone up nearly 55%.

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Crypto Lending Skyrockets 200%, Nears $25 Billion as Market Roars Back

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The overall crypto lending market soared to nearly $25 billion in outstanding loans by the close of the third quarter, according to Galaxy Research.

This surge reflects a more than 200% increase since early 2024, yet the market remains below its record peak of $37 billion in the first quarter of 2022.

Alex Thorn, the head of Galaxy's research team, pointed out this evolution to newly established centralized finance (CeFi) lending platforms and enhanced transparency across the industry.

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Platforms like Genesis, BlockFi, Celsius, and Voyager once held sway, but their downfall, many suffering from exposure to the FTX collapse in November 2022, left a gap that today's more open platforms have filled.

As of September 30, Tether USDT $1.00 led the market with $14.6 billion in open loans. It commands approximately 60% market share. Others, including Nexo NEXO $0.9161 and Galaxy, held around $2 billion and $1.8 billion, respectively.

CeFi lending has shifted toward more cautious practices. Uncollateralized lending has vanished, replaced by strict over-collateralization, tighter risk rules, and greater openness, measures aimed at attracting institutional capital and preparing for public listings.

On the decentralized side, lending via DeFi protocols also surged. Outstanding loans on decentralized finance (DeFi) applications reached a fresh quarter-end high of $41 billion, up 54.8% from the prior quarter.

When combining DeFi and CeFi lending, total crypto-collateralized borrowing reached an all-time high of $65.4 billion at quarter-end.

Recently, the UK government outlined plans to adjust how taxes apply to people using decentralized finance (DeFi) services. What did the agency say? Read the full story.